PTY - PIMCO Taxable CEFs: How To Play The PIMCO Whac-A-Mole Distribution Game

• Taxable PIMCO CEFs continue to be a mainstay of many income portfolios due to their strong returns and consistent alpha generation.
• In this quick update, we revisit our mantra that investors ought to pay attention to NAV distribution rates of the taxable suite if they care about potential changes in distributions.
• This is because historically, PIMCO has tended to cut those funds that feature the highest NAV distribution rates.
• This fits into our theme that the PIMCO taxable funds are not as different from each other as their different NAV distribution rates imply.
• Plus, as the recent special year-end distribution for PDO showed - investors are not necessarily leaving yield on the table if they opt for funds with lower NAV distribution rates.

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